Hyundai Motor and Kia Unions Facing Membership Attrition Amid Opposition to AI, Robots, and Calls for Retirement Age Extension

Declining Union Membership and Participation Rates

Excessive Demand for 30% of Operating Profit as Bonuses

Mandatory Advance Consultation on Manufacturing Technology Innovation

Generational Conflict Over Extension of Retirement Age to 65

The labor unions of Hyundai Motor Company and Kia, which represent the labor movement in South Korea, are facing a serious crisis of "membership attrition." This trend is attributed to the growing number of employees who do not agree with outdated demands that hinder future innovation or with political slogans that fail to resonate across generations.

According to the sustainability reports of Hyundai Motor Company and Kia released on July 3, the number of union members at both companies has been steadily declining. The number of union members at Hyundai Motor Company dropped from 40,985 in 2023 to the 30,000 range the following year, and further decreased to 37,829 last year. Over the past three years, the union membership rate fell by 1.4 percentage points, from 95.1% to 93.7%.

Kia also saw its union membership decrease by 700 people (2.6%) last year, from 26,582 in the previous year to 25,882. The membership rate plunged by 6.1 percentage points over three years, from 76.9% to 70.8%.

Both companies are also experiencing a structural decline in the number of permanent employees. At Hyundai Motor Company, the number of employees eligible to join the union decreased by 6.3%, from 43,092 in 2023 to 40,356 last year. During the same period, Kia’s number of permanent employees saw a slight drop from 33,641 to 32,777.

Additionally, there are concerns that these unions have been insisting on excessive demands that do not align with the times or public sentiment, which is seen as closely related to the departure of union members. Both unions have consistently demanded that 30% of net income (for Hyundai Motor Company) or operating profit (for Kia) be paid as performance bonuses every year.

Even amid ongoing factors such as the U.S. tariff wave and the Middle East wars, these demands have remained unchanged. As a result, there is growing public criticism that these demands are contributing to the rising prices of Hyundai Motor Company and Kia vehicles.

Furthermore, as management pushes for production line automation, such as the deployment of Boston Dynamics’ humanoid robot Atlas, the unions have demanded the inclusion of a clause in collective bargaining agreements stating that “AI and robots cannot be introduced without prior consultation” due to job security concerns. As global automakers compete to innovate manufacturing and shift toward high value-added industries, these actions have been criticized as a form of "modern-day Luddite movement," undermining their own competitiveness.

In particular, the demand to extend the retirement age has even sparked generational conflict among union members. Both unions have made the extension of the maximum retirement age to 65, linked to the timing of National Pension eligibility, a key condition in wage and collective bargaining negotiations.

Yonhap News Agency

This inevitably leads to a reduction in new hires, fueling widespread discontent among younger union members in their 20s and 30s, who view it as a "selfish demand that only benefits senior members." The demand for a "4.5-day workweek" has also been criticized as a selfish request by a union whose average annual salary exceeds 100 million won, as it seeks to work less while maintaining the same pay.

Despite these circumstances, the unions have announced plans to strike again this year, following last year’s actions. Recently, both unions have strengthened their negotiating power by building a joint struggle system with affiliates and subcontractors. The Metal Workers’ Union, which includes both groups, is planning a general strike on July 15.

Ji Soon Park, a professor at Korea University, commented, “The outflow of older union members and the reduction in new hires are leading to fewer new union members. Since new hires are increasingly concentrated in office and professional positions, the structural decline of production-centered union members is likely to continue.”

This content was produced with the assistance of AI translation services.